A commerce Commission investigation has discovered that the Gisborne Farmers' Market had been pre-fixing its produce rates to above the level of wholesale.

The investigation was conducted following the complainant; a member of the Gisborne Farmers' Market Committee, revealed to the commission the committee had approved a rule that required members to sell their produce above wholesale level.

The Commerce Commission has advised to the committee member, revealing that the rule was on the verge to violate a section of the Commerce Act, however, despite this the committee went ahead and passed the rule and officially announced to their members.

The Commission is reported that a settlement had been made with Gisborne Famers' Market, with the issue been resolved out of court.

"The Gisborne Farmers' Market Committee has agreed with the Commission that this was an attempt to fix, control, or maintain the price of produce, which is illegal under the Commerce Act. The Gisborne Farmers' Market Committee has agreed to remove the rule", said Commerce Commission general manager, Kate Morrison.

However, Gisborne Farmers' Market committee chairman Wim Zwart preferred to remain silent on the commission's decision.